The Hyderabad police have issued a critical public advisory, urging citizens to exercise extreme caution as cases of fraudulent loan schemes continue to escalate. The Central Crime Station (CCS), under the Detective Department (DD), has documented a concerning 25 loan fraud incidents between 2023 and 2025, highlighting a troubling trend across the city.
A detailed breakdown of these cases reveals a steady and alarming increase: five incidents were reported in 2023, followed by eight in 2024, and a significant jump to twelve cases in 2025 alone. This data underscores the urgent need for heightened public awareness and vigilance against financial scams targeting vulnerable individuals.
Fraudsters are employing sophisticated tactics, often impersonating representatives from legitimate banks, reputable non-banking financial companies (NBFCs), or even cooperative societies to ensnare unsuspecting individuals. Victims are frequently manipulated into sharing sensitive personal documents like PAN, Aadhaar, or bank account details. They are also pressured to pay various upfront fees, deceptively labeled as ‘processing charges’ or ‘account activation fees.’ However, once these payments are made, the promised loans never materialize, leaving victims out of pocket and exploited.
Further investigations have uncovered more elaborate schemes, including instances where criminals fraudulently obtained “gold loans” by pledging fake or already mortgaged gold ornaments. Alarmingly, many loan payments and subsequent repayments have been found diverted into personal bank accounts controlled by these fraudsters, entirely circumventing official financial channels and making recovery exceptionally difficult for victims.
These deceptive operations predominantly occur through online platforms. Scammers leverage instant messaging services like WhatsApp and Telegram, create convincing fake websites, and expertly impersonate reputable financial institutions. The police emphasize that these fraudsters excel at quickly building a facade of trust, which they then exploit to coerce victims into surrendering sensitive financial information or transferring funds under false pretenses.
To protect themselves, citizens are strongly advised to meticulously verify the authenticity of any lender. This can be done by cross-referencing information on official websites or contacting regulatory bodies directly before committing to any loan application. Authorities warn against paying any advance or service fees before a loan is officially disbursed, as genuine financial institutions only deduct such charges after the loan has been sanctioned and transferred.
Additionally, borrowers should meticulously safeguard their identity documents, personally inspect any collateral being pledged (especially in the case of gold loans), and exclusively use verified and official payment channels for all transactions. The police cannot stress enough the importance of remaining alert: avoid engaging with unsolicited loan offers received via phone calls, messages, or social media. Most importantly, report any suspicious or fraudulent activity to your nearest police station immediately to help prevent further victims and assist in ongoing investigations.